Abstract
Rice farming in Indonesia has an important role as a sector producing staple food for almost all of the population and provides a livelihood for millions of people in rural areas. Conditions of rice farming in Indonesia are quite unique because it is scattered in many island with diversity of social and economic characteristics of farmers, environmental conditions, and potential production. This study apply two-stage Data Envelopment Analysis (DEA) to estimate technical efficiency and analyses the determinants of technical efficiency rice farming based on farm level data collected by the Central Bureau of Statistics the Republic of Indonesia. The results showed that the average technical efficiency in all the rice-producing regions in Indonesia is moderate to High. This study suggest that policy to increase the technical efficiency in Indonesian rice farming should be prioritized on the use of certified seeds, control of pests and diseases, government assistance, education and irrigation.
Highlights
Efficiency of rice farming in Indonesia has attracted the attention of researchers for a long time
The results showed that the average technical efficiency in all the rice-producing regions in Indonesia is moderate to High
This study suggest that policy to increase the technical efficiency in Indonesian rice farming should be prioritized on the use of certified seeds, control of pests and diseases, government assistance, education and irrigation
Summary
Efficiency of rice farming in Indonesia has attracted the attention of researchers for a long time. Rice is grown by approximately 15 million farmers, or 77% of all farmers in Indonesia (BPS, 2009). The rice producing areas spread in many islands by which the characteristic of farmers, land condition, land size, environmental condition, infrastructure, accessibility to sources of financing are different. Most of the rice farmers are small farmers with agricultural land holdings of less than 0.5 hectares. This situation is commonly found in the densely populated areas such as West Java, Central Java, East Java, Bali and West Nusa Tenggara (BPS, 2009)
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